On january 1, 2017, lock corporation issued $1,800,000 face value, 5%, 10-year bonds at $1,667,510. this price
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- On january 1, 2017, lock corporation issued $1,800,000 face value, 5%, 10-year bonds at $1,667,510. this price resulted in an effective-interest rate of 6% on the bonds. the bonds pay annual interest january 1. instructions (round all computations to the nearest dollar.)
- (a) prepare the journal entry to record the issuance of the bonds on january 1, 2017.
- (b) prepare the journal entry to record the accrual of interest and the amortization of the discount on December 31, 2017 and December 31, 2018 assuming the use of the straight-line method to amortize the discount/premium.
- (c) prepare an amortization table for 10 interest periods for this bond issue using the effective interest method to amortize the discount/premium.
- (d) prepare the journal entry to record the accrual of interest and the amortization of the discount on December 31, 2017.
- (e) prepare the journal entry to record the payment of interest on January 1, 2018.
- (f) prepare the journal entry to record the accrual of interest and the amortization of the discount on December 31, 2018.
- (g) prepare the journal entry to record the accrual of interest and the amortization of the discount on December 31, 2019. please use the exel file problem 1
Related Book For
Accounting Principles
ISBN: 9781119707110
14th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Jill E. Mitchell
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